I dont know why people are doubting the veracity of the claim. I have seen this multiple times. Problem is not that google enforces their terms of usage. But that it enforces it like a mafia. All accounts banned, no option to backup data and stuff like that. I know atleast 3 people who bought domains with old free gsuite. Turns out the guy who sold them, had it changed via unofficial means. So suddenly google uses the ban hammer and they have nothing. All 40-50 accounts data gone with no review. After weeks of posting in google forums, they allowed temporary access to back up data.
Its really insane the amount of power and raw discretion that's at the disposal of these companies. I really want a non google/microsoft competitor in this domain that provides reliability and email+docs solution. Zoho was good for email but then they decided to stop pop & imap for free accounts. I have 3-4 people whoused their free service and then went to paid. It was a very well working thing. But they decided to screw with that. Web interface and their zoho mail app works fine though.